Do scandals endanger natural resources?

The convictions of former Westar Energy executives David Wittig and Douglas Lake for looting the utility of millions of dollars should cause members of society to rethink the role of business and the kind of corporate leaders they want to be in charge of our scarce natural resources, suggests Diane Swanson, associate professor of management, Kansas State University, Manhattan.

She notes that it is particularly distressing to consider the facts of the Westar case, given that energy essentially is a public good and therefore in need of special protections and stewardship. "The case of Westar is not about the pilfering of a firm that sells a luxury good to the top strata of society," Swanson notes. "It involves a commodity needed for the basic functioning of all in society. In that respect, this case is particularly troublesome."

Swanson, who is spearheading a national campaign to emphasize the importance of ethics in business education, argues that, as society considers the proper role of corporations, it must take into account the role of top executives. "A true steward not only conserves scarce resources and directs them to their proper ends, but he or she also gives back to society.

"Sadly, this sentiment has been lost over the years. Business schools bear some of the responsibility for this as, even in the aftermath of the corporate scandals, many have cut back on ethics courses or are resisting the idea of adding even one course on ethics or corporate social responsibility to the curriculum. In this way, the message of greed and selfishness gets perpetuated among business students and in society at large.

"The most recent statistic I have seen is that only one-third of accredited business schools offer an ethics course--and presumably even less require students to take one. This, too, should be a headline in newspapers across the nation. Business schools should stand trial along with the convicted executives."

Swanson believes that one of the lessons of these corporate scandals is that a countervailing check on business is needed. "Business operates with power and privilege because society grants it special standing to do so. Part of the arrangement is that proper oversight is needed so that the public good, not vested interests, is served."

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